EURUSD Elliot Waves Analysis For 22 February 2016

22 February 2016, EUR/USD

Wave Analysis:

EUR/USD is currently trading with a bullish bias. During the previous trading week, Euro traded short and ended up rebounding from daily support level 1.1080. As long as the pair trades above this level, expect an upward rally towards 1.1342. A break above 1.1373, will call for further long positions. In the meantime, we will park our sell orders and only execute them upon a clear breakout below 1.1080 with our target at the support level 1.095. This pair should be traded alongside other positively correlated pairs such as EUR/AUD, EUR/CAD, GBP/AUD and EUR/HKD. These pairs have a strong positive correlation of up to +0.96 and are thus expected to have a similar price action. Only buy or sell Euro if all the other positively correlated pairs are giving the same signal.

Trade Recommendation.

As long as the pair trades above 1.1080, expect an upward rally towards 1.1342. A break above 1.1373, will call for further long positions. In the meantime, Park your sell orders and only execute them upon a clear breakout below 1.1080 with your target at the support level 1.095.